Industrial

GSP successfully placed a $6,000,000 no-cash-out refinance of a 100% occupied multi-tenant industrial property in Carpinteria. The non-recourse loan is fixed @ 4.65% for 10 years, amortized over 30 years. Challenge: Prior to obtaining our loan commitment, the secondary financial markets erupted with significant index and spread volatility. The 10 year treasury increased about 70 basis points in conjunction with spreads gapping out. The borrower was not facing a loan event risk nor was pulling cash out, thus this transaction was driven by the all-in rate. Solution:As GSP is in the market daily, we were able to monitor credit spread movement and keep the borrower abreast of all re-pricing issues. At the time of rate lock (index plus spread), the lender maintained his originally quoted credit spread at 1.95%, which at the time of the lock, was 50 basis points inside the market. To quote the lender; “we are doing this to maintain the relationship with GSP”.